Omtag Svensk Järnväg today presents an interview report on how Sweden and Europe can increase growth. Industry leaders, economists and public debaters paint a consistent picture: Inadequate infrastructure, not least an inadequate railway system, currently constitutes an obstacle to growth for Sweden.
Two of Sweden's and Europe's most serious challenges are productivity growth and growth rates in relation to the rest of the world. In international rankings, Sweden is losing ground in economic development, and according to the European Commission's forecasts, this trend will continue in the coming years.
One of the obstacles to growth that needs to be addressed is transport infrastructure. The current Draghi report on the EU's lack of growth points to the need to complete the vision of the single market. One part of this is well-functioning transport. In Sweden, years of underinvestment in the railway system have caught up with us and are now threatening the industry's ability to grow.
In the report Clear Path for Increased Growth, a number of industry leaders, economists and public debaters were interviewed about their views on Sweden's need for investments in the railways and how they can be achieved. It is a coherent picture that is painted about Sweden's ability to handle the challenge: the resources are there. Investments to upgrade and expand the railways are ultimately about Sweden's conditions for future growth and prosperity.
"Sweden's railway system needs to function better than it does today. We at SJ are noticing an increased demand for train travel. However, lack of maintenance and capacity shortages on certain routes are currently an obstacle to meeting that demand. It is therefore gratifying to see that there is broad consensus between different sectors on investing in the railway system to remove obstacles to growth," says Monica Lingegård, CEO of SJ and chairwoman of the Swedish Rail Companies Association.
"This report adds further perspective on what the shortcomings in the railway system mean for Swedish growth. A functioning infrastructure is of great importance for both economic growth and productivity development. Well-functioning transport makes companies more efficient by, among other things, enabling them to better utilize their facilities and the skills of their employees," says Henrik Dahlin, CEO of Green Cargo and vice chairman of the Swedish Rail Companies Association.
To ensure that the Swedish railway system can contribute to future growth, Omtag Svensk Järnväg believes that measures are needed in four areas:
Maintenance: A focus on reinvestments that eliminate the maintenance debt within 10 years, as well as more efficient maintenance, rapid implementation, optimized traffic diversion and prioritizing low traffic impact.
Capacity: Investments in increased capacity on highly congested routes.
Trimming measures: A comprehensive program of trimming measures that will have an effect in the short and medium term.
Efficiency: Review of railway regulation, planning and administration.
People interviewed in the report
- Annika Winsth, Chief Economist at Nordea
- Håkan Buskhe, CEO of FAM
- PM Nilsson, CEO of Timbro
- Linus Eriksson, CEO of the Öresund Bridge
- Mona Björklund, Director at the European Commission's Directorate-General for Transport and Mobility
- Henrik Henriksson, CEO of Stegra, formerly H2 Green Steel
- Karin Johansson, Vice President of the Confederation of Swedish Enterprise
- Torbjörn Hållö, Chief Economist of LO
Seminar
The report will be presented during a seminar on October 8 at 1:00 PM where the following people will participate to comment on the conclusions in the report:
- Göran Persson, former Prime Minister
- Torbjörn Hållö, Chief Economist, LO
- Jonas Frycklund, Deputy Chief Economist, Confederation of Swedish Enterprise
- Ida Drougge (M), Member of Parliament, Finance Committee
- Ida Gabrielsson (V), deputy party leader and member of the Riksdag Finance Committee
